Private landlords ‘see profit margins fall’

Just over 25 per cent of all private landlords in the UK broke even or made a loss in the third quarter of 2009, new research reveals.

According to the latest survey from research agency BDRC, of those who fitted into this category, seven per cent made a small loss and one per cent revealed that their losses were "large".

On the subject of landlord rent, the study shows that 44 per cent of respondents fix their rental fees in line with the local market and one in seven private landlords undercut the regional average.

BDRC said that 21 per cent of landlords set their rent levels to cover their costs, 15 per cent choose their rent charges in order to slightly undercut the market rate and eight per cent leave the decision up to a letting agent.

Earlier this month, research from Paragon Group found that a third of landlords expect tenant demand to grow in the next 12 months.